Fiat CEO Sergio Marchionne and his team of executives visited Chrysler LLC headquarters in Auburn Hills, Mich., on Saturday in order to hammer out the proposed details face-to-face. According to a letter from Bob Nardelli the Fiat team met with him, co-president Tom LaSorda, executive vice president of product development Frank Klegon and executive vice president of manufacturing Frank Ewasyshyn.
“This was a very positive meeting,” Nardelli’s said in the letter. “This potential alliance is very promising, but getting there is totally contingent on meeting the viability plan required of us by the U.S. Treasury.”
According to Automotive News, he said that Chrysler must work harder to find ways to reduce costs while investing in product improvements and innovation that will help its long term viability.
Analysts have shown some skepticism about the new partnership. Even U.S. Senator Robert Menendez is urging Obama to require Chrysler to pay back its loans if Fiat takes a controlling stake of the U.S. automaker.
It was reported yesterday that as a part of the deal, Chrysler will introduce seven Fiat based cars in the U.S. in the coming years.